:Update: SCO Group Files Chapter 11 to Protect Assets as It Addresses Potential Financial, Legal Challenges
Update: SCO Group Files Chapter 11 to Protect Assets as It Addresses Potential Financial, Legal Challenges Sep 15, 2007, 02 :48 UTC (10 Talkback[s]) (9492 reads)
The SCO Group, Inc., a leading provider of UNIX software technology and mobile services, today announced that it filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. SCO's subsidiary, SCO Operations, Inc., has also filed a petition for reorganization. The Board of Directors of The SCO Group have unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders, and employees.
The SCO Group intends to maintain all normal business operations throughout the bankruptcy proceedings. Subject to court approval, SCO and its subsidiaries will use the cash flow from their consolidated operations to meet their capital needs during the reorganization process.
"We want to assure our customers and partners that they can continue to rely on SCO products, support and services for their business critical operations," said Darl McBride, President and CEO, The SCO Group. "Chapter 11 reorganization provides the Company with an opportunity to protect its assets during this time while focusing on building our future plans."
The SCO Group has filed a series of first day motions in the Bankruptcy Court to ensure that it will not have any interruption in maintaining and honoring all of its commitments to its customers. The motions also address SCO's continued ability to pay its vendors, the retention of various professional advisors, and other matters.
Groklaw: SCO Files For Chapter 11 Bankruptcy - Updated
"Stephen Shankland reports that this means the trial on Monday is off:
"IBM didn't comment, but Novell said it is evaluating its options. 'U.S. bankruptcy law automatically stays the court case. We're assessing our options for how to pursue our interests,' Novell said.
"Novell sure has had to work hard for their money. And now they will have to row the boat that little bit harder. And for those of you who bought airline tickets to go to the trial, get on the phone or online fast and cancel..."
